The Bank of Japan (BOJ) plans to proceed to the second stage of the digital currency demonstration test in April 2022. Based on the results of the first stage of the test, which started in the spring of 2021, the BOJ will focus the second-stage testing on the exchange of digital currency and cash, as well as reciprocity with private payment systems.
The BOJ announced [the transition to the second stage of testing] at a public-private liaison council meeting held on Oct. 15. Digital currencies issued by the central bank are called CBDCs. The European Central Bank (ECB) is making preparations to introduce a digital euro, joining the global trend of accelerated development of digital currencies. China is also rushing to launch a digital yuan. The BOJ plans a total of three stages of verification tests.